- February 10, 2020
- Posted by: Infomatic Solutions
- Category: Blog, RCM
In this article, you will find out all about Revenue Cycle Management, it’s the definition and the ways it affects your office. Continue to read to know how to optimize the revenue cycle for your office.
What is Revenue Cycle Management?
When we talk about revenue cycle in healthcare, it means a process of managing your office claims like payments, processing and revenue generation. Medical billing software or practice management software the two essential things that can manage the patient revenue cycle of your office. These tools will efficiently track the claims process.
Healthcare revenue cycle process is the amalgamation of many things such as finding eligibility of patient, co-pay collection, tracking and correcting coding claims, payment collection and taking follow-ups on rejected claims.
What problems prevail in health care revenue system?
Below are some major barriers in revenue generation, check if you are office struggling with the same problems?
The office staff is not educated or trained
Revenue cycle optimization works like a supply chain. If one person breaks the chain by not performing the task correctly the whole chain will be affected with it. If an employee is entering incorrect data like patient demographics or insurance information and coding errors it can cost a lot to the office. Also, it’s no good if they fail in understanding how their job in office revenue.
The communication gap between staff
In order to generate office revenue cycle, it is important that every employee is made of its job role and also how it affects office revenue. This is where communication comes in the picture. Communication between employees should always be open. The interaction between physicians, office manager and other staff will maintain office workflow.
Monthly or weekly meetings should be conducted to analyze all the financial reports that include account receivables, collections and revenue.
Workflow maintenance is a must when it comes to revenue generation. So you have to keep in check about everything happening in your office. Go through the charge slips and check for any missing charges. Inspect that your staff is checking the patient’s eligibility and copay before the patient arrives. Examine how much times your staff take on claims and follow-ups.
It is necessary to build a workflow and make everyone follow it. A decent workflow will not make your staff forget or miss out any task, eventually, there will be less to no delays or errors in payments.
Why it is important to manage Revenue?
All the above problems should be prevented but apart from that, you should be aware of claim rejection. 26% of your claims can be rejected by CMS, also 40% of claims are never resubmitted. The rejection can reduce 10% of revenue per physician.
There is not much to worry if you have a standard revenue cycle process and maintain your workflow you can increase your payments and reduce debt write-offs. To stay in business there are few things to consider like investing in an office consultant and medical billing company.
Choose the company which are specialized in Revenue cycle management, they will be helpful in resolving multiple issues in training, communication and your office workflow.
How to find solutions for Revenue Cycle Management?
Many times responsibilities of revenue cycle management can be baffling for some practices. Such responsibilities might collide in other office duties like employee management, administration task and government programs like MACRA, MIPS etc.
There is not much to worry, it should not affect your office financially if you optimize revenue cycle efficiently. Partner with Revenue cycle management company and they will assist you in getting most of your office’s revenue cycle. Seek RCM partner today, don’t wait any further as a wrong process can reduce revenue for your office.